The U.S. retail sales surged in March, driven largely by soaring fuel costs linked to the Iran conflict, according to data from the Commerce Department reported by CNN.
Retail spending rose 1.7% for the month, marking the fastest increase in more than three years. The report said a sharp rise in gasoline prices played a major role, with fuel sales jumping 15.5% as disruptions in the Strait of Hormuz tightened global oil supply.
Retail sales jump to 3-year high, but mostly because drivers are paying more for gas https://t.co/6DLYaKm5hC
— MarketWatch (@MarketWatch) April 21, 2026
Excluding gas, retail sales grew a modest 0.6%, indicating underlying consumer demand remains steady but not strong. Economists told CNN that spending was supported by tax refunds and resilient consumer behavior despite inflation rising 0.9% in March.
However, signs of strain are emerging. Apparel and restaurant spending slowed, suggesting households are adjusting budgets to absorb higher fuel costs.
Analysts warned that prolonged conflict could weaken consumers as savings decline and inflation pressures persist.
Also Read:
TIPP Staff
